Belfast Police Injured In 'Sustained Attack'

Several officers have been injured in east Belfast after a crowd of up to 300 people hurled fireworks, bricks and petrol bombs during "a sustained attack", the Police Service of Northern Ireland has said.

A PSNI spokesman said several arrests were made after the public disorder in the Castlereagh Street and Templemore Avenue areas overnight.

It comes after 10 police officers were injured on Thursday during a demonstration against the decision to reduce the number of days the Union flag is flown from City Hall.

Sky's Ireland Correspondent Vicki Hawthorne said: "The latest disorder has been relatively minor compared to other nights.

"There had been an earlier peaceful flag protest which initially dispersed without incident.

"People in the area have said the police have been too heavy handed in how they have dealt with protesters, and that, they say, has sparked trouble."

Stormont First Minister Peter Robinson described the violence against the police as "a disgrace".

He said: "Those responsible are doing a grave disservice to the cause they claim to espouse and are playing into the hands of those dissident groups who would seek to exploit every opportunity to further their terror aims."

He added: "All right-thinking unionists will want to channel their energies into political activity and to support the cause of finding political solutions to the problems that we face.

"In Northern Ireland the ballot box has primacy and is the only vehicle for choosing the people's representatives."

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Burnham: High-Sugar Cereals Should Be Banned

High-sugar breakfast cereals should be banned to stop children getting fat, according to the shadow health secretary Andy Burnham.

The Labour frontbencher said regulation should be introduced to cap the levels of salt, fat and sugar in food.

Mr Burnham has started garnering public and expert opinion on the subject as part of a consultation on tackling obesity.

"If we fail to act we are storing up huge problems for the country and the NHS in the long term," he said.

He is floating the idea of a 30% cap on sugar in cereals, arguing that many children's breakfast cereals are over one-third sugar by weight.

"I don't think any parent would be comfortable with their child eating something that is 40% sugar," he told The Daily Telegraph.

Last week, Organisation for Economic Co-operation and Development figures revealed 26.6% of British girls were obese and 22.7% of boys - double that of youngsters in France.

The coalition says voluntary deals with industry through the Responsibility Deal has cut salt, fat and sugar content in our food.

But Mr Burnham says the current voluntary approach is not working and new drastic measures are required to combat childhood obesity.

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Falklands Row: The Sun Warns Kirchner

A UK tabloid has published a full page newspaper advert in Argentina, warning its president to keep her "hands off" the Falklands.

The Sun is responding to an open letter from Cristina Fernandez de Kirchner, in which she calls for the islands to come under Argentine sovereignty.

A referendum on the islands' status is to take place in March.

Prime Minister David Cameron has insisted that residents of the Falkland Islands must decide their own future.

The Sun's message to Ms Kirchner - printed in English language paper the Buenos Aires Herald - raises the issue of Argentina's 1982 invasion of the islands.

It mentions the 649 Argentine and 255 British servicemen who lost their lives and says the invasion was in "direct conflict" with the UN principle of self-determination.

The ad in the paper - read by some 50,000 people - disputes Argentina's claim to the islands and points out that British sovereignty dates back to 1765.

It concludes: "Until the people of the Falkland Islands choose to become Argentinian, they remain resolutely British.

David Cameron insists the islanders must decide their own future

"In the name of our millions of readers and to put it another way: 'HANDS OFF!'"

Ms Kirchner's open letter was published in The Guardian and Independent and called for the UK to give up the Falklands - known as the Malvinas in Argentina.

She urged Mr Cameron to abide by a 1965 UN resolution to "negotiate a solution" to the dispute.

But the PM told the leader that she should "listen" to the result of the March referendum.

And he vowed that Falklands residents would have his full backing if they choose to remain British.

"The future of the Falkland Islands should be determined by the Falkland Islanders themselves, the people who live there," he said.

"Whenever they have been asked their opinion, they say they want to maintain their current status with the United Kingdom.

"They're holding a referendum this year and I hope the president of Argentina will listen to that referendum and recognise it is for the Falkland Islanders to choose their future.

"As long as they choose to stay with the United Kingdom they have my 100% backing."

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Rail Fares Must Not Be 'Ramped Up', MPs Warn

A rise in peak-time fares for rail passengers would just be a tax on commuters and should not be considered by the Government, a report by MPs has said.

Reducing the cost of the railways to taxpayers must not be achieved by "ramping up fares", the chairman of the House of Commons Transport Committee Louise Ellman said.

Following Sir Roy McNulty's report into rail costs, the Government is looking at a variety of measures, including managing peak-time demand by increasing fares for those travelling at the height of rush-hour.

The committee's report said: "We recommend that the Government rule out forms of demand management which would lead to even higher fares for commuters on peak-time trains."

The MPs said many lower-paid workers had no choice but to travel at peak times.

The report went on: "Higher prices at peak times might make a difference to demand at the margin but would for the most part be a tax on commuters who have no effective choice over how or when they travel."

The report also recommended that the Government should set out long-term policy on annual season ticket fare increases.

Thousands in the South East pay more than £5,000 for annual season ticket

The committee's comments come two days after inflation-busting average rises of 4.2% for regulated fares, which include season tickets, took effect for passengers.

Thousands of passengers in the South East now pay more than £5,000 for an annual season ticket.

This year's regulated fare rise would have been even higher had the Government not pulled back from the original plan of a greater increase.

The committee also said it was "very concerned" about the safety implications of proposals to reduce staffing at stations and on trains.

Launching the report today, Mrs Ellman, a Labour MP, said: "The number of rail passengers has increased but train companies' unit costs have not come down."

Bob Crow, general secretary of the RMT transport union, said: "While this report reinforces once again that our railways are nothing more than a multi-billion pound rip-off lining the pockets of a bunch of spivs and speculators, it ducks the real issue and that's the cast-iron case for public ownership."

Manuel Cortes, leader of the TSSA transport union, said: "This is the clearest warning to ministers against going down the route of rationing rail travel by pricing passengers off trains through super peak-fare tickets."

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Dawda Jallow CCTV: Boy Wanted Over Stabbing

Detectives have released a picture of a 15-year-old they want to question over the suspected murder of a teenager in a row over a mobile phone.

The CCTV image, filmed on a bus on Sunday just after 10.30pm, is believed to be the last sighting of Dawda Jallow from Peckham in South East London, who has been missing since the stabbing.

It shows him travelling on the number 35 bus between Camberwell Green and Newington Causeway.

"If anyone knows him, if anyone knows where he has been staying, if anyone has any ideas that they should put him up for the night, I would urge them not to and call us instead," said Detective Chief Inspector Matt Bonner, who is leading the investigation.

"He must be staying somewhere and so I am urging the community for their help in letting me know where that is."

The schoolboy is described as black, clean-shaven with cropped black hair, 5ft 5in tall and stocky for his age.

He has brown eyes and speaks with a London accent, although he is a Gambian national.

Dogan Ismail died of a single stab wound

Police made their fresh appeal as victim Dogan Ismail's family issued a statement about their loss.

"Our beloved son, friend, cousin, nephew and grandson has been cruelly taken away from us," they said.

"Words cannot describe how much we will miss him. We want justice for Dogan and his killer caught.

"Anyone with information, please tell the police."

The 17-year-old died from a single stab wound after a confrontation with four males on the Aylesbury estate in nearby Walworth.

He went there with his younger brother Orhan, 15, whose BlackBerry phone was stolen from him two days earlier.

It is believed they may have been lured there on the promise of getting it back.

A schoolfriend, who did not want to be identified, told Sky News a text message was sent inviting them to come and retrieve the phone.

Police earlier confirmed the pair went to Walworth to recover the stolen device.

DCI Bonner said: "It would appear that on the Sunday they went back onto the estate in an effort to recover that phone."

He added: "The line around him being lured there - I'm aware of that information, but it is not something that has been given to us directly, and we will pursue that with other lines of enquiry."

The incident happened just yards away from where 21-year-old Shaun Chambers, from Greenwich, was killed in a gangland attack on September 26.

Police said there was no link between the two deaths.

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People Who Fail To Fight Flab Face Benefit Cuts

Obese people could face cuts to their benefits if they do not attend exercise sessions, under new plans being outlined by a local council.

Westminster City council has published a report looking at how councils can link benefit payments to claimants' lifestyles.

It describes how some local authorities have begun allowing GPs to prescribe leisure activities like swimming and fitness classes.

It is hoped that by using technology such as smart cards, the use of leisure facilities can be monitored leading to housing and council benefit payouts being cut for those not attempting to lose weight.

The document, written with the think-tank the Local Government Information Unit (LGiU), states: "Where an exercise package is prescribed to a resident, housing and council tax benefit payments could be varied to reward or incentivise residents."

Obesity costs the NHS £5.1bn a year and the number of Britons who are overweight is expected to increase by 10% over the next decade.

In recent years the responsibility for tackling public health has moved back to local government, despite many councils experiencing funding cuts.

Councillor Philippa Roe, Leader of Westminster City Council, said: "Councils have a great opportunity to improve lives by thinking how public health can be integrated into existing local services, this can lead to savings being shared across the entire public sector.

"This report contains exactly the sort of bright, forward-thinking and radical ideas that need to be looked at."

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Dog Walker Swept Out To Sea In Blackpool

Rescue crews are resuming their search for a man who was swept into the sea in gale-force winds.

The 41-year-old was reportedly walking his dog in Blackpool with another man when the pair ended up in the water just after midnight on New Year's Day.

The second man got to safety and raised the alarm, but fears are growing for the missing man, who police said is from the local area.

A search was carried out in the early hours yesterday by RNLI and Coastguard crews from Blackpool and Lytham St Annes.

It was assisted by the Lancashire Police helicopter and the search and rescue helicopter from RAF Valley on Anglesey.

Further searches yesterday focused on an area of the Irish Sea around Blackpool's south pier and sea wall, and the coastguard said it would continue efforts today.

Stuart Atkinson, watch manager at Crosby Coastguard station, said: "We received a call at 12.13am from Lancashire Police reporting that a male was in the water near the South Pier at Blackpool.

"A second male had been in the water but managed to get to safety and raise the alarm.

"We believe, but it's not confirmed, that they were walking their dogs.

"A search was carried out by coastguard rescue units, the local RNLI lifeboats from Blackpool and Lytham St Annes and the police helicopter.

"The rescue helicopter from RAF Valley was also there providing lighting assistance for the search teams.

"The area was searched and unfortunately we didn't find the 41-year-old male at that time.

"We do believe a life ring was thrown to him and a football. We have located the football but not the life ring."

Mr Atkinson said the initial search operation was hampered due to very strong, westerly gale-force winds.

"As you can imagine, westerly winds are aimed straight at the sea shore at Blackpool and it made it quite difficult for the lifeboat crews to search," he said.

A Lancashire Police spokeswoman said: "The man and a friend were walking a dog along steps leading from the Promenade to the sea, close to the Central Pier on South Shore, when a wave washed them into the sea."

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Rail Fares: Call For End To Price Increases

How Much Will Your Ticket Cost?

Updated: 2:14am UK, Wednesday 02 January 2013

This is a table of rail fare rises, comparing the price of a 12-month season ticket bought in December with one bought from January 2.

The table does not include the price paid if within-London travelcards are also purchased for Tube and bus journeys in the capital.

Where London is mentioned, this means travel to London terminal stations where travel is allowed by any route option shown by the National Rail Enquiry system, Journey Planner, where the journey can be made using only one ticket.

ROUTE                          DEC 2012  JAN 2013  % RISE

Leeds-Wakefield              £908      £964            6.16%

Bishop's Stortford-London  £3,560    £3,704     4.04%

Portsmouth Harbour-London  £4,480    £4,668  4.19%

Basingstoke-London         £3,800    £3,960       4.21%

Ramsgate-London            £4,640    £4,864     4.82%

Woking-London              £2,780    £2,896        4.17%

Folkestone-London          £4,612    £4,836      4.85%

Reading-London             £3,800    £3,960       4.21%

Sevenoaks-London           £2,980    £3,112    4.43%

Aylesbury-London           £3,520    £3,632      3.18%

Bedford-London             £4,004    £4,172      4.19%

Hastings-London            £4,400    £4,584     4.18%

Canterbury-London          £4,588    £4,812    4.80%

Deal-London                £4,640    £4,864    4.82%

Dover Priory-London        £4,640    £4,864    4.82%

Ludlow-Hereford            £1,892    £1,992    5.28%

Bangor-Llandudno           £1,084    £1,140    5.16%

Morpeth-Newcastle            £960    £1,008    5%

West Malling-London        £3,712    £3,876    4.42%

Guildford-London           £3,092    £3,224    4.27%

Bracknell-London           £3,800    £3,960    4.21%

Braintree-London           £3,960    £4,124    4.14%

Tunbridge Wells-London     £3,968    £4,132    4.13%

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Bulging Bill Of Britain's Obesity Epidemic

By Gerard Tubb, Sky News Correspondent

Britain is in the grip of an obesity epidemic costing £5bn a year - and not enough is being done to tackle it, according to the Royal College of Physicians.

A report by the RCP says severely overweight patients are suffering from what it calls "patchy" NHS services and a lack of joined-up thinking from the Government.

Thirty-one-year-old Matthew Briggs, from Strensall, near York, says the NHS was of little help when he weighed more than 31 stone.

Now more than 17 stone lighter, and Slimming World's 2012 champion, he says he was offered slimming pills and a drastic diet.

"They gave me very limited options of what I could have," he said.

"You only see your GP for 15 or 20 minutes (and) you've got an entire week or month before you see them again."

He says he eventually relied on a combination of willpower and encouragement from other overweight people to help him slim down so much he is now training for the London Marathon.

The RCP report calls for teams of specialists to be set up around the country along with a national anti-obesity group similar to Action on Smoking and Health, which is credited with helping to reduce the number of people who smoke.

The authors also want to see an obesity champion in each NHS trust, better training for health care professionals, more research into obesity and help for overweight NHS staff.

With around a quarter of UK adults classed as obese, the report says too many doctors and nurses are seriously overweight and setting a bad example to the people they are trying to treat.

Professor John Wass, academic vice-president of the RCP, said: "Britain is getting bigger and whilst we try to prevent the increase in obesity, we must also prepare the NHS for the influx of patients presenting with severe complex obesity."

A Department of Health spokeswoman said: "We are committed to tackling obesity and are taking action to help people keep a healthy weight and prevent them needing hospital care for obesity-related conditions.

"The medical profession has a key role in providing advice and treatment to people who are overweight or obese, and the Royal College of Physicians can help its members do this."

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New Year Celebrations: UK Welcomes In 2013

Large crowds lined the banks of the River Thames in London and the streets of Edinburgh as the UK saw in the start of the New Year.

Along the Thames, up to 250,000 people were expected to watch a major fireworks display as the night sky was set to be illuminated with pyrotechnics to round-off a momentous year.

Revellers were able to watch clips from the 2012 Olympic Games during an 11-minute firework display set around the London Eye.

Millions more were expected to watch it all on television.

In Edinburgh, tens of thousands of people descended on the streets of Scotland's capital for the world-famous Hogmanay celebrations.

Around 75,000 partygoers counted down the last 10 seconds of 2012 before joining in a mass rendition of Auld Lang Syne after the clock struck midnight.

Scottish rockers Simple Minds headlined the Hogmanay concert and street party.

Fireworks explode around the London Eye

The View, Bwani Junction, Reverend and the Makers and The OK Social Club were also due to play, and fireworks were set off to mark the start of 2013.

Pete Irvine, artistic director of the Hogmanay celebrations, said: "I think it's going really well this year.

"It's really, really busy here tonight - probably busier than we've seen it in some time because the weather is so good.

"There's a moon in the sky, it's actually not cold and it's not raining.

"We've been very lucky with the weather and I think we are going to be very lucky with the crowd and all the performances tonight on many stages."

Following their hard work during the London 2012 Games, more than 150 of the mayor's 'Team London Ambassadors' volunteered at the Thames event to help ensure it was a success.

They gave out maps, helped direct people to the viewing areas, and provided guidance and advice on getting home safely.

Kisses exchanged during Hogmanay celebrations in Edinburgh

The Mayor of London, Boris Johnson, who organised the event, said: "Our New Year's Eve fireworks will cap a triumphant year for London."

He added: "As we welcomed the world to the magnificent celebrations for the Queen's Diamond Jubilee and the glorious success of the Olympic and Paralympic Games, London was at its very best.

"From the thrilling sporting action to the breathtaking cultural celebrations, it has been an unforgettable year and I am immensely proud of the contribution that our Ambassadors made to that success.

"As we go into 2013 with a spectacular fireworks display I hope we can build on that energy and enthusiasm to make ours the best big city in the world."

Early celebrations got under way in Edinburgh on Sunday night with a torchlight parade.

A record crowd estimated at 35,000, including 7,000 torch carriers, were led by the massed pipes and drums and the Up Helly Aa' Vikings from Shetland.

The procession made its way through the city streets to the burning of the effigy of a Viking boat and a spectacular Son et Lumiere display on Calton Hill.

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IDS: Tax Credit System 'Haemorrhaging Money'

More than £10bn of public money has been lost in fraud and error under the tax credit system put in place by Labour, the Work and Pensions Secretary has claimed.

Attacking the welfare model developed by the last government, Iain Duncan Smith said tax credits were "not fit for purpose" but had been extended ahead of the 2005 and 2010 general elections in a pitch for votes.

The system was "wide open to abuse" and "haemorrhaging money", he wrote in an article for The Daily Telegraph.

"In the years between 2003 and 2010, Labour spent a staggering £171bn on tax credits, contributing to a 60% rise in the welfare bill.

"Far too much of that money was wasted, with fraud and error under Labour costing over £10bn."

Mr Duncan Smith said HM Revenue and Customs conducts checks on far fewer tax credit claims than suspected benefit fraudsters.

That is despite about one in 12 tax credit claims being incorrect or fraudulent, compared with fewer than one in 25 benefit claims.

Payments are based on estimates of income for the coming year, and after 2008 HMRC did not attempt to reclaim overpayments of less than £25,000.

That is set to be reduced to £5,000 under the coalition, alongside moves to require proof of payments from those claiming for childcare or that children aged between 16 and 19 are in full-time education.

The Government hopes to save more than £300m in the next three years by reducing fraud and error, and also wants to recover more than £400m in unpaid debts.

Mr Duncan Smith is overseeing a fundamental overhaul of welfare which will see tax credits rolled into a new Universal Credit which is meant to simplify the system and better incentivise work.

"Even for those in genuine need of support, tax credits were not fit for purpose," he said.

"The system was haemorrhaging money while at the same time trapping people in a system where those trying hard to increase the amount of hours they worked weren't necessarily better off."

Mr Duncan Smith said tax credit payments had risen by 58% in 2005 and by more than 20% in the two years before the 2010 election.

"At the most basic level, Labour used spending on tax credits as an attempt to gain short-term popularity. They knew what they were doing - it was a calculated attempt to win votes," he claimed.

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Revellers Get Ready For New Year Knees Up

Spectacular shows of fireworks and entertainment will take place across the globe as revellers welcome in the new year.

A dazzling display of pyrotechnics and lights is set to illuminate London's night sky to round-off a momentous year in the capital city.

The Mayor of London, Boris Johnson, who has organised the event, said: "Our New Year's Eve fireworks will cap a triumphant year for London.

"As we welcomed the world to the magnificent celebrations for the Queen's Diamond Jubilee and the glorious success of the Olympic and Paralympic Games, London was at its very best.

"From the thrilling sporting action to the breathtaking cultural celebrations, it has been an unforgettable year and I am immensely proud of the contribution that our Ambassadors made to that success.

"As we go into 2013 with a spectacular fireworks display I hope we can build on that energy and enthusiasm to make ours the best big city in the world."

Last year's London celebrations saw Big Ben lit up

Up to 250,000 people are expected to crowd on to the banks of the Thames to watch the display, with millions more seeing it on television.

Following their hard work during the London 2012 Games, more than 150 of the mayor's 'Team London Ambassadors' will volunteer at the event to help ensure it is a success.

They will be giving out maps, helping direct people to the viewing areas, and providing guidance and advice on getting home safely.

Scots rockers Simple Minds will be headlining the Hogmanay concert and street party in Edinburgh.

The View, Bwani Junction, Reverend and the Makers and The OK Social Club will also be playing to an anticipated crowd of 80,000, and fireworks will be set off to mark the new year.

Celebrations got under way in the city last night with a torchlight procession. A record crowd estimated at 35,000, including 7,000 torch carriers, were led by the massed pipes and drums and the Up Helly Aa' Vikings from Shetland.

The procession made its way through the city streets to the burning of the effigy of a Viking boat and a spectacular Son et Lumiere display on Calton Hill.

Sydney's fireworks are expected to be bigger than last year

The central Pacific Ocean island of Kiritimati (Christmas Island) and the eastern-most island in the island nation of Kiribati will be the first to usher in the new year at 1000 GMT.

Sydney will be the first major world city to see in the new year at 1300 GMT, with some 1.5 million people expected to attend the city's events.

As one of the largest new year events in the world, the traditional firework show on the Sydney Harbour Bridge will display more than 100,000 firework patterns, costing 6.5m Australian dollars (£4.2m).

American Samoa, an unincorporated territory of the US in the southern Pacific Ocean, will be the last place on Earth to herald in the new year on Tuesday at 1100 GMT.

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Murdered Organist: Bishop To Lead Prayers

The Bishop of Sheffield will today lead prayers for a church organist who died days after being attacked on his way to midnight mass on Christmas Eve.

Grandfather Alan Greaves, 68, was discovered badly beaten near his church in High Green, Sheffield, on Monday.

Two men are in custody after being arrested yesterday on suspicion of murder.

A South Yorkshire Police spokesman said one was in his 20s and the other in his 40s. Both were from Sheffield.

He added: "Officers are searching a number of properties in the area and there has been a high-visibility police presence in High Green today."

The Bishop of Sheffield, Dr Steven Croft, will lead this morning's service at St Saviour's Mortomley and High Green Church, as the community gathers to remember Mr Greaves.

Mr Greaves has been described as a 'gentle soul'

A spokesman for The Diocese of Sheffield said: "The church service will follow the normal pattern of a liturgy reflecting the Sunday after Christmas, but prayers will be offered for Alan, his wife Maureen and his family as well as for the wider congregation and community."

Detectives are still appealing for anyone with any information about the murder to come forward.

Mr Greaves, a father-of-four, died in hospital on Thursday after suffering serious head injuries in the attack.

Police are treating his death as murder but say the motive for it is unclear.

His widow, church community worker Maureen Greaves, 63, told The Sun: "There was no motive.

"We are devastated. It is just not what you expect, somebody to walk down the street and get murdered - and at this time of year as well, it's just dreadful."

Police say they're baffled by the killing

Canon Simon Bessant, from St Saviour's, described Mr Greaves as a "good man" who fell victim to an evil act.

He said: "He was a gentle soul. He wasn't foolish - he would have handled the situation as best as anyone would, but we don't know what he encountered."

Canon Bessant said Mr Greaves had been attacked 250 yards from the church and that his family had been at home.

"His wife wants justice but she doesn't want vengeance. She is not embittered but obviously she wants this person to be caught."

Mr Greaves had four adult children and had recently become a grandfather to twin boys adopted by his daughter in Mozambique.

He and his wife had recently set up a food bank and community project in the area where he was killed.

Dr Croft has sent a message to every parish in his diocese asking for prayers for Mr Greaves, his widow and their family.

In it, he said: "Please would you hold Alan's family and the church family at High Green, with Simon Bessant the Vicar and the wider family of Church Army, in your prayers in the coming days and especially this Sunday morning."

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Cameron: Britain 'On Right Track' For 2013

By Jon Craig, Chief Political Correspondent

David Cameron has used his New Year's message to declare that Britain is "heading in the right direction" on all the big issues and can look forward to 2013 with "realism and optimism".

In a video address, the Prime Minister acknowledged 2012 was "tough", with many families finding it difficult to make ends meet - and admitted he had "no quick fixes" to the UK's economic problems.

But he cited evidence of "real progress" on cutting the state deficit, reforming welfare and improving school standards, which he said was preparing Britain to succeed in the "global race" with emerging economic giants like China and India for the jobs and opportunities of the future.

Mr Cameron said that his administration was "a Government in a hurry" which would not give in to pressure to slow the pace of deficit reduction or rein in reforms to welfare and education.

"This is my message to the country at the start of 2013," said the Prime Minister. "We can look to the future with realism and optimism.

"Realism, because you can't cure problems that were decades in the making overnight. There are no quick fixes and I wouldn't claim otherwise.

"But we can be optimistic too because we are making tangible progress. We are doing what's right for our country and what's best for our children's future."

Insisting that "we are on the right track", Mr Cameron said: "On all the big issues that matter to Britain, we are heading in the right direction and I have the evidence to prove it."

The deficit is forecast to be a quarter smaller at the New Year than it was when the coalition Government came to office. There are almost half a million more people in work, and more than 1,000 new academy schools have opened, said Mr Cameron.

And he hailed moves to take millions of low-paid workers out of income tax, freeze council tax bills and deliver the largest-ever increase in the state pension.

"This is, quite simply, a Government in a hurry," said Mr Cameron. "And there's a reason for that.

"Britain is in a global race to succeed today. It is a race with countries like China, India and Indonesia; a race for the jobs and opportunities of the future.

"So, when people say we can slow down on cutting our debts, we are saying no. We can't win in this world with a great millstone of debt round our necks.

"When people say we've got to stop our welfare reforms because somehow it is cruel to expect people to work, we are saying no. Getting people into good jobs is absolutely vital, not just for them, but for all of us.

"And when there is a fight on our hands to change our schools, we are ready and willing to have it, because having a world-class education is the only way our children are going to get on in this world."

He added: "This is what this Government is about: making sure Britain succeeds in this global race and, above all, helping our people succeed - the people who work hard and aspire to a better life for their families."

The message steered clear of the debates over Britain's future in the European Union - due to feature in a long-awaited speech by the Prime Minister in the coming weeks - and gay marriage, which have driven divisions through the Conservative Party over the past year.

Instead Mr Cameron looked back on 2012 as "an extraordinary year for our country", characterised by the Diamond Jubilee celebrations and the successful Olympics and Paralympics.

In response, Labour vice chair Michael Dugher said: "It's a case of more of the same from David Cameron.

"In his New Year message, Cameron talks of people who work hard in this country but he's the one hitting hard-working families on lower and middle incomes whilst cutting taxes for millionaires.

"David Cameron stands for the old divide and rule Tory approach of the past - he can't be the One Nation Prime Minister Britain needs.

"Cameron promised change but nothing is changing for the better. Britain's economy is failing under his policies over the last year, with nearly one million young people out of work.

"Prices are still going up faster than wages and borrowing is going up not down, over 7% higher this year than last year.

"This Prime Minister is out of touch, he stands up for the wrong people and he's failing to deliver for working people."

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